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ANCHOR GROUP LIMITED - Trading Update

Release Date: 06/05/2020 09:07
Code(s): ACG     PDF:  
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Trading Update

ANCHOR GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2009/005413/06)
Share code: ACG ISIN: ZAE000193389
(“Anchor” or “the Company”)

TRADING UPDATE

Business conditions in South Africa have changed dramatically in the past few months due to COVID-19 and
the board of directors of Anchor wish to provide shareholders with an update on the impact of the COVID-19
pandemic on Anchor.

For the first quarter of 2020, ended 31 March 2020, the ongoing turnover of the business is 10% higher than
the comparable period in the prior year (which excludes the once-off termination fee earned by the Company
in respect the Astoria investment management agreement during February 2019).

Assets under management and administration have increased from R57.4 billion at 31 December 2019 to
R59.2 billion at 31 March 2020 (an increase of 3%). Strong inflows, a weaker Rand and higher brokerage
revenue have more than offset the decline in equity markets. Inflows for the first quarter have been in excess
of R3 billion. Adjusted headline earnings per share is in line with management’s expectations for the first
quarter.

Following the first quarter, April 2020 saw a meaningful bounce back in markets, which is positive for Anchor.
However, we expect volatility to continue and it is difficult to forecast earnings for the remainder of the year.

Anchor’s balance sheet remains strong with cash and investments of R123 million at 31 December 2019 and
with approved facilities of R45 million as at 31 March 2020.

We are still in the early stage of understanding the impact of COVID-19 on the global economy, financial
markets and the timing thereof. Anchor has reacted proactively with a focus on the preservation of client
wealth, client communication and identification of new opportunities. The board of directors will continue to
monitor the impact of COVID-19 on the business and will communicate with shareholders as circumstances
change.

The financial information contained in this trading update has not been reviewed or reported on by our
auditors.

6 May 2020

Designated advisor
Java Capital 
Date: 06-05-2020 09:07:00
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